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A Project Report On

Channel Satisfaction

Lumbini Beverages Pvt. Ltd. Hajipur
Under The Guidance of Mr.Rakesh Ranjan
[(Head-Marketing & Training), PEPSI, Patna (Bihar)]

In Partial Fulfillment of the Requirements For the award of

Post Graduate Diploma In Management (PGDM)

Academic Session 2012-2014 Internal Guide Dr.Monika Suri (Associate Prof.:-Marketing) Doon Business School, Dehradun Submitted By Abhishek Kumar Singh Enrollment No.:-0122PGM031

Doon Business School-Global

Behind Pharma City, Mi-122 Selaqui,Dehradun Tel:-0135-2699085
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I, Abhishek Kumar Singh declaring that all the information given in this project report is true and correct as far as I know. I am also declaring that all the work in this project is done by me and not copied from anywhere.

Abhishek Kumar Singh Enrollment No-0122PGM031 Session- 2012-14

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There is a famous saying The theory without practical is lame and practical without theory is blind. This modern era is era of consumers. Consumers satisfy themselves according to their needs and desires, so they choose that commodity from where they extract maximum satisfaction. It has been identified that in the beginning of 21 st century the market was observed a drastic change. The successful brand presents itself in such a way that buyers buy them in special values which match their needs. Marketing is an important part of any business and advertisement is the most important part of marketing. Summer training is an integral part of the PGDM and student of Management have to undergo training session in a business organization for 2 months to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of Doon Business School-Global , Dehradun has with a modern system of practical training of repute and following management technique to the student as integral part of PGDM. in according with the above obligation under going project in Lumbini Beverages Pvt. Ltd. Hajipur. The title of my project is Channel Satisfaction Certainly this analysis explores my abilities and strength to its fullest extent for the achievement of organization as well as my personal goal.

(Abhishek Kumar Singh )

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At the very outset of engaging myself in to the Project Report, I would like to express my sincere gratitude to all those who extended their concern not only to convey their best wishes but also to give me support on this hi-undertone path. This Project Report on my 2 months practical training in Lumbini Beverages Pvt. Ltd. Hajipur (Pepsi) in area of Patna is a part of my course curriculum of my PGDM. This project could not have been completed without timely suggestion, advice and co-operation of a lot of persons. I am extremely thankful and pay my gratitude to the Head Training & Placement Cell (Doon Business School,Dehradun for his valuable guidance and support on completion of this project in its presently . I am greatly obliged to Mr. Bhupendra Singh (HR Manager, Lumbini Beverages Pvt. Ltd. Hajipur) who accommodated me for training in this esteemed organization. I am highly indebted to Mr. Rakesh Ranjan (Head-Marketing&Training,Bihar) who provided me an opportunity to work and also guided me at every stage on my project. His proper direction and consult inspiration proved to be an asset for this project. A special appreciative Thank you is accorded to all staff of Lumbini Beverages Pvt. Ltd., Hajipur and MDC, Patna for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically. At last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete this project report.

(Abhishek Kumar Singh)

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Preface Acknowledgement Title Chapter 1. Introduction of the Soft Drinks in India Chapter 2. Chapter 3. Chapter 4. Chapter 5. Chapter 6. History of Soft Drinks in India History of Pepsi Production Process Product Manufactured and Main Consumer

Organizational Structure History and Organizational Structure of Lumbini Beverages Pvt. Ltd. Hajipur Objective of the Study Importance and relevance of the Study Future Growth Of Pepsi Awards

Research Methodology of the study Introduction to the study Methodology used in the study Research Design Research Methology

Competition of Pepsi Vs Coke A Theoretical frame work of Market Share Market Evaluation System Customer Survey Every Dealer Survey (EDS) vi

Channel Satisfaction

Signage A Brief Summary Of Direct Interviews

Chapter 7. Chapter 8. Chapter 9.

Swot Analysis. Mckinseys 7s Framework Conclusion and Suggestions Limitation of the study Scope of the Study

Chapter 10.

Questionnaire Bibliography

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History Of The Soft Drink In India History Of Pepsi Production Process Product Manufacturing And Main Consumers

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Christopher Columbus as a traveler of world found a lot of new things which was not in the eye of the world community which is now in our history but now if any one does travel to whole part of world to get one thing in some form that is Pepsi. Travel to any corner of the globe you are sure to spot a label splashed in blazing blue, red and white becoming you to some Sugared water. This dark coloured drink WillyMilly has today become nothing but spot of an international anthem with young and old, rich and poor wants for a sip and saying Yeh Dil Mange More. Gold Spot is considered as the first branded soft drink established 53 years ago before all empowering Coca Cola entered the country to dominate the scene. It faced no competition and its euphoric imaged built up in the western countries helped it to get ready clientele and glamour. Parle Export Pvt. Ltd. is regarded as the first Indian company introducing Limca, a lemon drink complimentary to there well established Gold Spot in 1970 which got moderate success. However, before this, he had also introduced Cola Pepino which was withdrawn in face of tough competition from Coca Cola. When Coca Cola bid farewell in 1977, Indian market was open for various cold drinks several companies came forward publishing the different brands in the market. Parle people introduced their Cola Thumps Up with a mighty bang saying Happy days are here again as if happy days went away with Coca Cola.. Pure drinks of Delhi also without losing much time introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola along with Campa orange and Campa lemon. Modern Bakeries entered in the market with the Double Seven. Moharn meakings with Merry Pikup and McDowell with Thrill, Rush and Sprint in Indian market where there was no competition previously. A cut throat competition and heavy advertising was on. Each one was trying their best to become the number one company with A class product in the field of soft drink business in India.

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Now after a long gap the govt. of India has given permission to the Coca Cola to start their business in India. Coca Cola has joined hands with Parle to the business on the Indian soil. They are trying best to regain its prestige which it has before.

The much rival of Parle is Pepsi an American concern. It started business the occupied nearly 50% share of soft drinks market in India. Now, Pepsi is going all out to prove that they are the best.

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PepsiCo is a USA based company having its headquarters at New York with the net worth of $30-40 million. The average sales of the company are approx 90 million bottles per month. Pepsi made it first international move in Russia in 1959. During the Khrushchev era, within 32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155 countries. In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the world with its headquarters in New York. It was invented by Pharmacist Culab D. Baradham in 1898 to cure the disease Dyspepsia. It is from this word that its name was related to Pepsi. Soon it entered the American market as soft drink, which at that time mostly dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the whole world by storm. Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990 and soon it was giving the local contenders run for their money in soft drink market. It comes out with dazzling marketing innovation that rocked the cola market, like selling the product through function Pepsi outlets. Its advertisement agency was Hindustan Thomson Association (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24 crores which is likely to be increased manifold in coming years. Pepsi food is one of the largest and best foreign investments in India. Till today it has invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India. Some are directly controlled by Pepsi and rest is under various franchisees. Pepsi stands 51st position among the fortune 500 companies of the world. Its total capital is approx $3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally. 11 Channel Satisfaction

In April 1997 the Pepsi cola international decided that Steel City Beverage will cover south Bihar (now Muzaffarpur) only. In this accordance Pepsi cola international decided to open another bottling plant at Hajipur named Lumbini Beverages Pvt. Ltd. Hajipur which will distribute Pepsi product in whole Bihar. Ananda Marketing as a marketing division of Lumbini Beverages Pvt. Ltd. Hajipur started functioning in April 1997; Managing Director of Lumbini Beverages Pvt. Ltd. Hajipur is Mr. Charan Khelani. The director of this organization Mr. Ravi Khelani and Mr. Manoj Khelani

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CEO PepsiCo

Chairman of the board and Chief Executive officer

ABOUT THE PEPSICO CEO:-Nooyi joined PepsiCo in 1994 and was named president and CFO in 2001. Nooyi has directed the company's global strategy for more than a decade and led PepsiCo's restructuring, including the 1997 divestiture of its restaurants into Tricon, now known as Yum Brands. Nooyi also took the lead in the acquisition of Tropicana in 1998, and merger with Quaker Oats Company, which also brought Gatorade to PepsiCo. In 2007 she became the fifth CEO in PepsiCo's 44-year history. Business officials rave at her ability to drive deep and hard while maintaining a sense of heart and fun. According to Business Week, since she started as CFO in 2000[2], the company's annual revenues have risen 72%, while net profit more than doubled, to $5.6 dollars billion in 2006.Nooyi was named on Wall Street Journal's list of 50 women to watch in 2007 and 2008, and was listed among Time's 100 Most Influential People in The World in 2007 and 2008. Forbes named her the #3 most powerful women in 2008. While CEO of PepsiCo in 2008, Indra Nooyi earned a total compensation of $14,917,701, which included a base salary of $1,300,000, a cash bonus of $2,600,000, stocks granted of $6,428,538, and options granted of $4,382,569. 13 Channel Satisfaction

MISSION To become the best consumer product company in the world by consistently generating the highest return to shareholders. CORPORATE HISTORY

Caleb Bradham invented Pepsi Cola in the year 1898 in his pharmacy lab. The original Pepsi bottling plant is located in New Bern U.S.A, The original name of Pepsi Cola was Brads Drink created in the back of a pharmacy. Caleb Bradham turns the century by finding the Pepsi Cola New Bern, who was N.C. Druggist. Today brand Pepsi and other Pepsi Cola North American products including diet Pepsi, Pepsi-one, Mountain Dew, Slice and Mug Brads account for nearly one third of total; soft drink sales in the United States, a consumer market. Pepsi Cola Company, the worlds second largest beverage company. Frito-lay Company, the largest manufacturer and distributor of snacks chip. Tropicana products, Inc., the worlds largest market and producer of branded juices. Pepsi Co. Inc. was founded in 1965 through the merger of Pepsi Cola and Frito-Lay, Tropicana was acquired is 1998. Pepsis success is the result of superior products, high standards of performance, distinctive-competitive strategies and the high integrity of their people. However it took 5 years to trade mark the product. The present logo in block letters is a result of modification in the original logo, which was in elaborated script form. The logo was changed from an elaborate script to the modern block letters on the 1970 Pepsi Label. Several different logos have been used. Until 1951, the words Pepsi and 14 Channel Satisfaction

Cola were separated by 2 dashes. These bottles are double dash. In 1951, the modern logo with single hyphen was introduced. All types of advertising Memorabilia are collected and reproduction are being made. These bottles are called Double dash. The birthplace of Pepsi is located in historic New Bern. North California. PepsiCo North America (PCNA) manufactures concentrates of Pepsi Cola Beverages such as PEPSI, PEPSI-COLA, DIET PEPSI, PEPSI ONE, MOUNTAIN DEW, SLICE MUG and FRUIT WORK AND SIERRA MIST for sale to franchised bottle in the United States and Canada. PepsiCo International (PCI) manufactures concentrate of PEPSI, PEPSI COLA, DIET PEPSI, PEPSI ONE, PEPSI MAX, 7UP, MIRINDA, KAS, MOUNTAIN DEW and other brand for sale to franchised bottled outside of the United States and Canada. The Pepsi/Lipton Tea partnership, a joint venture of PepsiCo and Unilever N.V. sells tea concentrate to Pepsi Cola bottler and develops and markets ready-to-drink tea products under the Lipton trademark, including LIPTON BRISK and LIPTON ICED TEA. PepsiCos partnership with Starbucks Corporation develops ready to drink coffee products which are sold under the Starbucks FRAPPUCCINO trademark and are distribution of AQUAFINA bottled water. In addition, PCNA manufactures and sells DOLE juice drinks for sale and distribution by Pepsi cola bottled. PepsiCos Tropicana Products Inc. (TPI), produce, market, sells and distributes its products under such well known trademark as TROPICANA PURE PREMIUM and TROPICANA SEASONS BEST. In the United States, TPIs Portfolio also includes TROPICANA TWISTER juice beverage product and TROPICANA PURE TROPICS 100% juice product. It also manufactures and sells FRUIVITA chilled juices, LOOZA nectars and juice, COPELLA fruit juices and AVLALLE soup and fruit juice EUROPE, Principal International markets include Belgium, Canada, France and Unites Kingdom. PepsiCos Frito Lay North America (FLNA) manufactures, markets, sells and distributes a varied line of salty and sweet snack foods throughout the United States and Canada, including Lays and RUFFLES brand potato chip, DORITOS and TOSTITOS brand tortilla chips, ROLD GOLD brand pretzel. WOW! brand low fat and no fat version of potato and tortilla chips. 15 Channel Satisfaction

SUNCHIPS brand multigrain snacks, a variety of branded disps and salsas, GRANDMAS brand cookies and CRACKER JACK brand Candy coated Popcorn. FLNA also sells and distributes OH BOY! OBERTO brand meat snacks under an agreement with the Oberto Sausage Company. PepsiCos Frito-Lays International (FLI) sells a variety of snack foods which appeals to local tastes including, for example, SABRITAS brand snack foods in Mexico, WALERS brand snack foods in the United Kingdom, SMITHS brand snack foods in Australia, GAMESA brand cookies and ALGERO brand sweet snack in Mexico. In addition, many of our U.S. brands, such as Lays, FUFFLES, DORITOS, TOSTITOS, CHEETOS and FRITOS brand salty snack food have been introduced internationally. Principal international market included Mexico, The United Kingdom, Brazil, Spain, the Netherlands, Australia and South Africa, India. CORPORATE PROFILE Pepsi Co. Inc is among the most successful consumer products companies in the world with 1998 revenues of over $22 billion and 151000 employees the company consist of Pepsi cola company the world second largest beverage company Frito-lay, the worlds manufacturer and distributor of snack chips and Tropicana products, Inc the worlds largest marketer and producer of branded juices. PepsiCo brands name are among the best known and most respected in the world. Some of the PepsiCo brand names are 100 year old but the corporation is relatively young. PepsiCo Inc was founded in the year 1965 through the merger of Pepsi cola Frito-lay Tropicana was acquired in 1998. PepsiCos success is the result of superior products high standard of performance distinctive competition strategies and high integrity of their people. Their overriding objectives are to increase the value of shareholder investment through integrated operating investigating and financing activities. Their strategy is to concentrate on their resources on growing their business both through integral growth and carefully selected acquisition their strategy is continuously fine-tune to address the opportunities and risks of the global market place. The corporation success reflects their continuous commitment 16 Channel Satisfaction

for growth and focus on those business where they can drive their own create opportunities. Today the turnover of PepsiCo is 2500 cr. Employing 3000 employees in India, The share of PepsiCo. is 48%, the brand of Pepsi worth Rs. 1700 cr. With share of 51% that makes its largest selling co. 7UP is the leading brand in non-cola segment.

General Manager

Unit Manager

Account & Distribution Manager

Territory Development Manager

Customer Executive

Sales Trainee



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PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamics needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $700 million since the company was established in the country. PepsiCo provides direct employment to 4000 people and indirect employment to 60000 people including suppliers and distributors. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks- Gatorade, Tropicana 100% fruit juices, and juice based drinksTropicana Nectars, Tropicana Twister and Slice. PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets. 18 Channel Satisfaction

The group has built an expensive beverage and food business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of the-art plants. PepsiCos business is based on its sustainability vision by making tomorrow better than today. PepsiCos commitment to living by this vision everyday is visible in its contribution to the country, consumers and farmers. SLOGANS:2000: Aazadi dil ki (India) 2003: Its the Cola/ Dare for more 2005: Wild Thing/ Ask for more (With Jennifer Lopez & Beyonce Knowles) 2006: Why You Doggin Me/ Taste the one thats forever young Commercial featuring Mary J. Blige 2007: More Happy/ Taste the one thats forever young (Michael Alexander) 2008: Yeh hai youngistan meri jaan! (India) 2008: Pepsi Stuff Super Bowl Commercial (Justin Timberlake) 2008: Pepsi is TV Commercial (Luke Rosin) 2008: Pepsify karo gai! Commercial 2009: Refresh Everything/ Every Generation Refreshes the World 2010: Every Pepsi Refreshes The World 2011: Where theres Pepsi, theres Music (Commercial) 2012: Change The Game Present: Oh Yes Abhi

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Pepsi Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been many Pepsi variants produced over the years since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X ( available in 20 Channel Satisfaction

Finland and Brazil), Pepsi Next( available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One and Pepsi Ice Cucumber in Japan. It was made of carbonated water, sugar, vanilla, rare oils and kola nuts. Whether the original recipe included the enzyme pepsin is disputed. RISE IN POPULARITY During the Great Depression, Pepsi gained popularity following the introduction in 1929 of a 12- ounce bottle. Initially priced at 10 cents, sales were slow, but when the price was slashed to five cents, sales increased substantially. With a radio advertising campaign featuring the jingle Pepsi cola hits the spot/ Twelve full ounces, thats a lot/ Twice as much for a nickel, too/ Pepsi-Cola is the drink for you. Pepsi encouraged price-watching consumers to switch obliquely referring to the Coca-Cola standard of six ounces a bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsis status. In 1936 alone 500000000 bottles of Pepsi were consumed. From 1936 to 1938, Pepsi-Colas profits doubled. 2. PEPSI CAN

The first of the many new designs of Pepsi cans were released in 2007. In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests, the majority of participants picked Pepsi as the better tasting of the two soft drinks. 21 Channel Satisfaction

PepsiCo took great advantage of the campaign with television commercials reporting the test results to the public. In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 Ageless Wonders that helped redefine promotion marketing In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks. 3. MIRINDA

Mirinda is a brand of soft drink available in fruit varieties including orange, grapefruit, apple, strawberry, pineapple, banana, passion fruit and grape flavors. It is part of a beverage area often referred to as the flavor segment, comprising carbonated and non-carbonated fruit-flavored beverages. The orange flavor of Mirinda represents the majority of Mirinda sales worldwide. Mirinda is owned by PepsiCo and is primarily commercialized outside of North America. It competes with Coca-Colas Fanta and Cadbury-Schweppess Orange Crush brand, with flavor brands local to individual countries. As with most soft drinks, Mirinda is available in multiple formulations depending on the taste of individual markets. Mirinda, the largest orange drink brand in the country, has roped in leading lady of Kollywood, Asin, as its new brand ambassador in the south. Mirindas new positioning of Use your mouth well integrates both its existing taste credentials and incorporates elements of self-expression becoming increasingly important to young consumers across the country. 22 Channel Satisfaction

Mirinda adorning the new look, will be rolled out across markets over the next few weeks, and will be available in glass bottles, cans and the stylish PET packs that are cool, trendy and convenient to hold, handle and pour.


Slice was launched in India in 1994. In 2002, PepsiCo launched the drink in guava, litchi and orange flavors, but there were later discontinued. Slice is popular among mango lovers, and known for providing the ultimate mango experience to a variety of beverage seekers. It has been communicating to the youth through its add campaigns, which have depicted the joy of having Slice through a fun flirtatious interaction between a boy and a girl. Last year, for the very first time, Slice associates itself with Bollywood and tied up with the Yash Raj Films Jhoom Barabar Jhoom. Slice and Slice Mangola have a new, Katrina Kaif. The Bollywood actress is the first ever film actress to endorse a brand in the juice category. 5. SODA

Carbonated water, also known as sparkling water and seltzer is plain water into which carbon dioxide gas has been involved and is the major and defining component 23 Channel Satisfaction

of most Soft Drinks. The process of dissolving carbon dioxide gas is called carbonation. It results in the formation of carbonic acid (which has the chemical formula H2CO3). In the past, soda water also known as club soda was produced in the home by charging a refillable seltzer bottle by filling it with water and then adding carbon dioxide. Club soda may be identical to plain carbonated water or it may contain a small amount of table salt, sodium citrate, sodium bicarbonate, potassium bicarbonate, potassium sulphate or disodium phosphate, depending on the bottler. The additives are included to emulate the slightly salty taste of homemade soda water. The process can also occur naturally to produce carbonated mineral water such as Mihalkovo in the Bulgarian Rhodopes. 6. 7UP

7 UP is a brand of lemon-lime flavored non-caffeinated soft drink. The rights to the brand are held by Dr. Pepper Snapple Group in the United States, and PepsiCo (or its licenses) in the rest of the world. The 7 UP logo includes a red spot between the 7 and UP, this red spot has been animated and used as a mascot for the brand. 7. MOUNTAIN DEW

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Mountain Dew is a caffeinated, sweet, citrus-flavored soft drink produced by PepsiCo. Inc. The main formula was invented in Marion, Virginia, named nad first marketed in Johnson City, Tennessee and Knoxville,Tennessee in 1948, then by the Minges family in Fayetteville, North Carolina and across the United States in 1964. When removed from its characteristic green bottle, Mountain Dew is bright yellowgreen and semi-opaque. As of 2006, Mountain Dew was the fourth-best-selling carbonated soft drink in the United States, behind only Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Diet Mountain Dew ranked ninth in sales in the same year. 8. AQUAFINA MINERAL WATER

Aquafina is a brand of bottled water. It was first distributed in Wichita, Kansas in 1994, and was distributed across the United States, Canada, Turkey, Vietnam, Pakistan and India. As of 2003, it had become the United States top-selling bottled water brand in measured retail channels. Aquafina is sold in 12-fluid ounce, 500 mililitre (16.9 fl oz), 20-ounce, 24-ounce, 1-litre and 1.5 litre bottles. Aquafina uses PepsiCo s own seven-step purification system, which it calls HydRO-7, which 25 Channel Satisfaction

includes charcoal filtration, reverse osmosis, and ozonation. PepsiCo states in marketing material that this system removes substances that may be in other branda of bottled water. As of July 27, 2007, PepsiCo put a disclaimer stating the water comes from a public source on each bottle. Aquafina uses the term Purified Drinking Water on its label. In Canada the current 1.5 L bottle of water displays Demineralied Treated Water. The bottle also displays that the water is From the public distribution of Mississauga. Aquafina Sparkling carbonated flavored water, available in Berry Blast (Raspberry), and Citrus Twist. Aquafina Flavor Splash, flavored water (without carbonation), and artificially sweetened with Sucralose, available in Grape, Citrus Blend, Wild Berry and Raspberry. Aquafina Alive, a low calorie, vitamin-enhanced water beverage, available in Berry Pomegranate, Peach Mango and Orange Lime. 9. TROPICANA TWISTER

PepsiCo India has launched Tropicana Twister- its international fruit brand in India. The fruit drink is targeted at young adults who are on the lookout for natural refreshment on the go. Tropicana Twister is being launched in a phased manner, starting first with the southern states of Tamil Nadu., Andhra Pradesh and Karnataka. With this new offering, PepsiCo intends to replicate the products international success in India now. It will be available in two PET pack sizes- 350 ml PET at Rs.22 and 1.2 L PET at Rs.70. Tropicana Twister launch will be supported by a mix of consumer outreach programs across urban markets. 26 Channel Satisfaction

10. VISI COOLERS VISI Coolers are the coolers having transparent glass door, also possess the respective company advertisement. The figure will clear all the doubts. VISI Coolers very important as they directly affect the advertisement of the company as well as the products inside the cooler. One Crate includes 24 pieces. VISI COOLERS are available with single door as well as double door according to the size and requirements.

There are different sizes available according to the customer requirements.

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The process of manufacture of Aerated water (soft drink) like Pepsi brand product is divided into mainly five parts such as 1. Water Treatment 2. Syrup Making 3. Bottle Washing 4. Filling 5. Testing of Product

(1) Water Treatment: - Water treatment is very essential in soft drinks plants as
the nature and quality of water varies from place to place. To set uniform and standard water the process of treatment is carried on. The water taken out from bore well by the help of motor pump and pipe line are collected in storage tank where is pre chlorinated by chlorinators and by the help of pipe lines comes to treatment tank called coagulation tank where to this water solutions of different strength of bleaching powder, ferrous sulphate, hydrated lime are added through dosing pump to reduce alkalinity, hardness, kill the bacteria .The chemical are mixed by mechanical stripper and then the suspend mattress settle down as sludge and clear water passes to retention tank. From this tank, the water passes through sand filter containing fine sand and pebbles and carbon filter containing granular carbon and finely through water polisher, micron filter, and UV lamp to ensure clear and sanitary water for use. Further water used in bottle washer and boiler need softening .for this purpose ,the water from storage tank ,after passing through two filter beds contain fine sand and granular carbon respectively comes to pass through bad resin were it is softened .this soft water is essential to use in and bottle washer to reduce scale formation inside the machines.

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(2) Syrup Making:- For syrup making of particular brand, calculate quantity of
sugar water activated carbon and high flow super cell known as filter aid taken in to sugar to enter steam and also filled by a motor with agitator. Sugar syrup called raw-syrup is prepared by dissolving the sugar with continuous stirring and heating by steam supplied by fired boiler. This hot syrup by the help of pump is filtered through a filter press attached with a series of quality filter paper to separate out carbon particles. Clear hot syrup by the help of SS pipe lines passes through water P.H.E. for cooling and the then another P.H.E. circulated by glycol for further cooling. The chilled syrup comes to a mixing tank to use calculating of sugar quantity by Brix Hydrometer, concentrate added and mix thoroughly by a mechanical Stirrer fitted to the tank. This syrup is now finished syrup ready for use. The concentrate mainly, the liquid part are kept in a cold store, the temperature of finished syrup is also maintained by air-conditioner. All the containers used for syrup making are cleaned and sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda solution.

(3) Bottle Washing: Bottle washing is an important part in soft drink plant. The
empty durable and returnable bottle used are returned from market in plastic carats are fed to a bottle washing machine (washer). The machine has double end system with circular chain to carry the bottles. Caustic soda Tri-Sodium Phosphate, Sodium Glausonate is adding to the caustic by the supplied. The Caustic tank filled in with water heated by steam supplied by the boiler. The empty bottles enter to the hot Caustic tank in one end and after being cleaned by hot Caustic solution and finally washed with water through spray jets fitted are discharged in other end. The washed bottle proper inspections are SU 319 and SU 853 used for conveyor cleaned and smooth running of chain carrying bottles. SU 260 and SU 773 is used for bottle cleaning, shining, and mold removing.

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(4) Filling: - Finished syrup and treated water lime are commixed to a dosing
pump which mixes syrup and water with ratio of 1:5 and the syrup mixed with water enters to carbonator tank to mix CO2 gas, which is preserved in cylinder for use. The cylinders are connected through CO 2 manifold to tank to use requisite quantity of gas. To control CO2 pressure and temperature of liquid; we used recording control (Taylor). The syrup passed through a P.H.E. which is called itself by circulation of chilled glycol supplied chilling F-22 gas used. The syrup being chilled easily mixed with CO2 gas and enters to filter for bottling. The filter is connected with filling valves and lift cylinders. The lift cylinder functions by pressure of air supplied by an air composer. The syrup is known as beverage in this stage is filled in the cleaned bottles which are durable in nature and returnable by buyer filling machine (filter) by a counter pressure of carbon dioxide gas. After beverage filled in bottle it goes to the crowner where with the help of crown crocks the bottles are sealed (crowned) to project the carbonation, flavor, outside contamination and spoilage. The finished products are coded by a coding machine and inspected properly by inspection light while passing through the conveyor where finished product are accumulated enters to carat washer machine and it is washed moves through the conveyor where finished product are accumulated. Then the products are kept in plastic carats which are durable in nature and returnable by buyer, put on palates and sent to shipping for shipment. The entire container in contact with syrup are properly cleaned and sanitized by Soda-BiCarbonate, hot water, caustic soda solution and strong chlorine does.

(5) Testing of product:- Finally the finished syrup during bottle is tested in
laboratory to meet the parameters and also to get a standard and quality products to maintain the standard and information and uniformity in products the sugar contents and carbonation in the bottle are checked in regular intervals by Brixhydrometers, Refrectometer and pressure gauge. The dead weight tested is used to calculate pressure gauge to know the correct pressure. TA & Ph are tested by 30 Channel Satisfaction

digital Ph meter. Electronic digital balanced is used to weight chemical to conduct test in lab. The purity of CO 2 is checked by CO2 purity tester. The chlorine comparators. The microbiology test of the product and water used in syrup making and production are also done to ensure that the product is free from any bacteriological contamination. To conduct the micro test hot sterilizer incubator, autoclave, pads filter membranes, media are produced and used. The Diesel generator is operated in case of electricity failure for smooth operation of the plant. To drawn electricity for the State Electricity Board the transformer is used. The steps involved in the production process are: First the fork lift supplies the empty bottles which are collected from the distributions. Then depalletising is done i.e. separating cases filled or empty bottles from the wooden planks. Uncasing is done by separating empty bottles from the cases/carats. Empty bottles are then fed into the bottle washer where stream with some chemical is used for washing. Washed bottles are then send to the filler where premix (Composed of syrup, treated water bulk CO2) is filled in it. The whole concentrated is chilled with glycol before filling and then crowning is done. The filled bottles are passed through inkjet coder for printing price and date. Then again the filled bottles are send for final light inspection and from there they are collected on a table. Lastly the filled bottles are arranged in the crates (casing) and then palletizing is done for storing it in the warehouse. PREPARATION OF SYRUP Treated water + Sugar = Flavour 31 Channel Satisfaction

The product manufactured by Lumbini Beverages Pvt. Ltd. are very limited ranges as it is not independent to diversity its products. It is a unit of Pepsi food Pvt. Ltd. which supplies concentrates for drinks. They are:Products Pepsi Mirinda Mirinda Mirinda 7 Up Mountain Dew Slice Lehar soda Pet Pet Can Aquafina (Mineral Water) Quantity 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml, 200ml 300 ml 300 ml 1.5 lt. 2 lt. 330 ml 1 lt. Colour Brunt sugar Sun-set Tetrazine Tetrazine Colorless Colorless Sunset Tetrazine Brunt sugar Brunt sugar Brunt sugar Colorless Flavour Cola Orange Lime Mango Lemon Lemon Mango Lemon Cola Cola Cola White

The main consumers of these products naturally are youth. Besides the direct consumer it is also used for the some purpose of providing it to the mass by hoteliers, restaurant owners and various other soft drink peddlers. These products are the choice of the new generation. Thus it can be said that it is a product of mass consumption.

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History and Organizational Structure of Lumbini

Beverages Pvt. Ltd. Hajipur Objective of the Study Importance and relevance of the Study

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History of Lumbini Beverages Pvt. Ltd. Steel City beverages Pvt. Ltd. is situated at Adityapur Kandra Road in Jamshedpur. Rushabh Marketing Pvt. Ltd. is the marketing division of Steel City beverages. Steel City beverages Pvt. Ltd. is a mother unit and its whole marketing activities are done through Rushabh Marketing Pvt. Ltd. Steel City beverages is one of the Pepsi foods Bottling plants in the country and one of the three in Eastern India. The other two are in Calcutta and Guwahati. But from 01-04-1997 Pepsi Foods Ltd. India determined to open another bottling plant which is situated at Hajipur namely Lumbini Beverages Pvt. Ltd. It is only for North Bihar. Steel City beverages Pvt. Ltd. was established by Late Mr. Dharam Chand Kamani in the month of June 1967. The machineries of its main plant were imported in 1968 and production started in March 1969. Before the establishment of Steel City beverages Pvt. Ltd. Coca Cola was not much popular among people of Bihar state as pure soft drink because at that time the bottles of Coca Cola was supplied by the outsiders who were unable to make Coca Cola popular in Bihar. So after considering the needs and desires of people Mr. Dharma Chand Kamani brought in Bihar. With this effort Coca Cola become popular among the people of Bihar. But in 1977 due to the sudden change the policies of the Government to import license for the concentrate of Coca Cola was stopped. So Steel City beverages Pvt. Ltd. had to walk over to Indian Concentrate Companies. They were modern food industries supplied concentrate of double seven and non ice cream soda. In 1983 the company introduced a cola drink THRILL of Mc-Dowell & Co. Ltd. in the place of Double seven and triangular and in the very next year two soft drink RUSH an orange flavoured and SPRINT as lemon flavoured of Mc-Dowell & Co. Ltd were introduced. 34 Channel Satisfaction

Before some months Ananda Marketing Pvt. Ltd. was the marketing division of Lumbini Beverages Pvt. Ltd. But at this time, Lumbini Beverages Pvt. Ltd. is doing marketing with its own name. Thus it can be seen that Lumbini Beverages Pvt. Ltd. has made tremendous move towards the introduction and development of soft drinks industries on the whole, and North Bihar in particular. It has made production of perfect hygiene and standard Soft Drink as main objective.

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An ideal organizational structure facilities management and the operation of the enterprise and it help the organization in achieving its goal. In a simple term in various parts or component are interrelated or interconnected and this way it is the established pattern or relationship among various function of the organization in the established manner. The managing director holds the top position. At present, the managing director of Lumbini Beverages Pvt. Ltd. is Mr. Charan Khilani. But the overall policies regarding management decisions and all executives function or performance look after by the day to day decision and general administration as well as management. The MD has given the power of attorney and authority to director Mr. Ravi Khilani. Mr. Ravi Khilani who is well advised by the MD. The director Mr. Ravi Khilani looks after all functional departments that sales production, account, personnel and purchase. Though the manager all the functional departments has specially designated as head of personnel department. Every department has to report directly to the managing director and is responsible to his only for working in spite of this all departments is under the control of the director Mr. Ravi Khilani. Because he is the Chief Executive of the company cited earlier. The overall organizational structure can be shown as:

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T.D.M. .




A.D.C. C.E.



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The marketing manager is in charge of all marketing activities i.e. sales promotion, publicity and advertisement, marketing study and shipping. But the main function of the marketing is to exercise the control over the channel of distribution. The marketing manager is assisted by sales executives, city sales executives and rural sales executives and sales executive of shipping department as follows:DIRECTOR







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Management is a course which teaches the student to get the work done properly from different available sources viz. man, machine, material, money etc. So there can be a satisfaction from the organization side and the workers side who play a significant role in achieving success. So far the fulfillment or the management course, it gives emphasis to project work and students learn how to plan in practical terms rather in terms of theory only. Student tends to develop analytical and problem solving skill. We necessary become motivated and competitive, in fact all the learning that goes on for the two year term become so much the part of our thinking that we developed a well all rounded personality. The following are the objectives and purpose of the studyi) For the fulfillment of Post Graduate Diploma in Management (PGDM) programme as realized by the Doon Business School-Global,Dehradun. (AICTE approved) ii) To care and contact with the working of an organization and to see the different types of marketing activities. The main emphasis is on the Channel Satisfaction of the product. iii) Whatever the subject taught in the class room of PGDM course that is completely theoretical. So during the training period we compare how the marketing research (sales) activities (practical) of our organization with the theories. iv) Find the depth and width of distribution channel adopted by Lumbini Beverages Pvt. Ltd. Hajipur and compare them with those followed by competitors. v) To ascertain the consumer brand perception of cold drinks with respect to price, product, quantity and advertising.

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Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their packed bottle and with this idea its makers made these drinks available mostly, at those places where water was not available i.e. on highways and long distance trains. But slowly and slowly with its beautiful taste these become very popular and now they are available not only in the market and street corners, but also people have started keeping it in their house. The credit of popularizing the soft drink goes to Coca Cola. This was the drink which is liked by all ladies, gents and children. Now days soft drinks are quenching thirst looks more often; they are taken due to habits. Gold Sport is considered as the first branded soft drinks, established 53 years ago before all empowering Coca Cola faced competitions and its euphoric image built up in the western countries helped it get ready clientele and clamor. Parle Export Pvt. Ltd. is regarded as the first Indian Company introducing Limca a leman drink complementary to it this has also introduced Cola Pepone which was withdrawn in the face of tough competition from Coca Cola. When Coca Cola bid a Farwell in 1977, Indian market was open for various new forward publishing different brands in the markets. Parle people introduced their Cola, Thumbs Up with a mighty saying Happy days are here again as if happy days went away with Coca Cola. Pure drinks of Delhi also without lasing much introduced pure drinks were producing and marketing Coca Cola earlier Campa Cola with Campa orange and Campa lemon. Modern Bakeries entered the market with Double Cola Seven, Mohan Makings with Merry & Plkup and McDowell with Thrill, Rush and Sprint. This is Indian market where there was no competition and high voltage advertising was on each one

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was trying their best to become number one company with A class product in the field of Soft Drink business. Now after a long gap government of India had given permission

to Coca Cola, which joined with Parle to do business in India. They are trying their best to regain prestige which it had before. The much rival of Parle is Pepsi an American concern. It started business on the Indian soil just a few years ago. Today, it has occupied 62% shares of Soft Drinks market in India. Now Pepsi is going all out to prove that they are the best. But now due to some factors competition among them has become stiffen. So in this way the important activities have increased.

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Research Methodology of the study Introduction to the study Methodology used in the study Research Design Research Methology

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When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it was expected the liberalization of Indian economy. This was the expectation of his modern concept regarding every walk of life. When Pepsi has appealed on our collective consciousness of few years ago to be more exact in April 1989. When it set up operation for beverages snack foods and export business. The establishment of Multinational Company Pepsi was supposing to prediction in present Indian business scenario. Despite love for ones own motherhood and traditional concept of Indian people it was assumed that it is very hard to make and create taste and preference about soft drinks but despite of having so many confusion, no one was able to assume such a wide acceptance and it was PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi that has got not only a place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar. And needless to say Generation next has become the slogan of the day. The first managing director was Mr. Ramesh Vanagal but present is Mr. P.M. Sinha in India. During these years beverages begin an exclusively franchise operating beverages now has five company owned bottling operation (COBO) the business expects to grow three times faster than the industry growth rate 1995 and its vision is to become INDIAS BEST CONSUMER PRODUCT COMPANY in all aspect. The snacks business has seen some major success and going for leadership too. Pepsi is a leader in the snacks food business. The division plans to introduction wide range of snakes in to Indian market in the next three years. The restaurant business has also come Kentucky Fried Chicken (KFC) has opened its first outlet at Bangalore Pizza but it also expected to open restaurants shortly city wise. Whole of the operations of Pepsi in India has made a rapid change in Indian life style, which is resulting in fast food life. Pepsi is a world leader in restaurant & soft drink whether it is in London or in Ludhiana, America or Ahmedabad, Berlin or Bombay, Paris or Patna, Manchester or Madras. 43 Channel Satisfaction

Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has recently received permission from the foreign investment board in Rs. 300 crores ($95 million) more. The investment phase will continue and could add unto Rs. 700 crores over the next three years. The figure is not cast in stone if volume exceeds according to expectation. They will increase capital expenditure. Apart from these things there is an expression which can not verify easily that is Pepsi has made qualitative gains. The foremost is its image from being perennially seen as a loosing company its now got the image of being a winner. This major turn around is not small achievement considering that since it was established in 1989 taking the hard ship route prior to liberalization and weighed down by export committments. Pepsi has won more battles than it has lost. In April 1993 Voltas and Punjab Argos stakes were bought over converting Pepsi foods from a three way joint venture to be a fully owned subsidiary week bottlers who did not have the financial capacities were given massive support in the form in interest free loans to upgrade their operating capacity . But the strategy which has proved to be winner was the position, Pepsi decided to take in Company Owned Bottling Operation (COBO). For this another subsidiary PepsiCo. India holding was set up as an investment vehicle, capitalized 95 million dollar. Within a year 1994 Pepsi has bought over 5 bottlers including dukes in Mumbai, which was running in Maharastra which has been bought over from Voltas high speed imported lines with a speed of 600 bottles per minute was installed in Delhi. Pepsi has a strong franchisee in the Jaipurias of Pearl drinks. Pepsi is setting up a new plant at Jaipur.

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The present study of Soft drinks markets in all over Patna is based on survey methods. In survey methods, there are two types of survey. One is Census Method and another is Sampling Method. In this sample survey methods I have taken only a small part of the whole and data collected from the small part are made applicable to the whole i.e. I have taken Patna and some adjacent area of Patna like Boring Road, Kurji More etc. . Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I maintained different chart for different routes during my dealer survey. I have collected data from the distributor of Patna. Data Sources Primary data collection involved distributors, retailers and consumers Research Approaches Research Instrument Sampling Plan Sampling Unit Sampling size Sampling procedure Contact Method : : : : Distributors 02 Retailers 87 Consumers 1100 : : Survey Interview Schedule

Purposive Selection Personal Interview

In interview schedule I used multiple choice question and ranking system questions

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The research process designed was conclusive and statistical in nature which would enable the company to take rational decision? This is because the sample size taken large and the technique adopted were for mass media .the data obtained from each only locality was tabulated and the result were obtained in from of percentages. DATA COLLECTION PROCESS:1) Primary Sources 2) Secondary Sources 1) PRIMARY SOURCE:OBSERVATION:-The observation was done by the following method Keeping the market in view Keeping the customers and consumers in view Interacting with various group of Retailers and consumers

SURVEY:Various retailer and consumer with the help of questionnaire.

PERSONAL INTERVIEW:This method of data collection involves the interviewers asking question in a face on fact situation there in direct personal investigation and the interview in properly structured as it involves the use of set of predetermined question which are asked in the form and order predecided. This technique is preferred as it economical more informative, non-response are low spontaneous reaction which are realistic, lots of supplementary information comes up. 2) SECONDARY SOURCE:Secondary data are consists of information that already exists some where and have collected for a difference purpose, it provide a starting point. To select the localities a map of Patna was used, the list of Retailers was obtained from company official, designed by company. 46 Channel Satisfaction

Under research methodology there are three type of method for marketing research, these are follows:a) The observation method b) The experimental method c) The survey method inclusive of panel method. The Observation Methods: - In observation method data are collected on the direct observation. No talk take palace .by observing the person the analysis make the inventory as to product used by him at his home or kept as retailers stocks. The Experimental Method: - In experimental method it is based on the concept that small scale experimental is useful to indicate the expectation of large- scale experiment. The Survey Method Inclusive Of Panel Method :- The survey method information is gathered directly from individual in three way1) Telephone 2) E-Mail 3) Personal interview Objective: To measure the satisfaction and dissatisfaction level of Pepsis customers. SWOT Analysis. To find the reason behind dissatisfaction if any. Remedies to clear the dissatisfaction. 47 Channel Satisfaction

Product line is a group of product, that are closely related because they satisfy a class of needs or used together or sole to the same customer groups or marketed through the same types of outlets or fall within given price range. Lumbini Beverages Pvt. Ltd., has the following product line:

Name Pepsi Mirinda Mirinda Slice 7Up Dew Lehar Soda

Colour Brunti Sunset Tetrazine Sunset Colourless Colourless Tetrazine

Flavour Cola Orange Lemon Mango Lime Lime Lemon

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RATE 192 240 480 495 192 240 480 495 192 240 192 240 480 495 192 480 495 240 552 576 360 600 360 240 480 PER PCS RATE 8 10 20 55 8 10 20 55 8 10 8 10 20 55 8 20 55 10 23 48 15 25 12 10 20

PACK SIZE 200 ML 300 ML 600 ML 2000 ML 200 ML 300 ML 600 ML 2000 ML 200 ML 600 ML 200 ML 300 ML 600 ML 2000 ML 200 ML 600 ML 2000 ML 250 ML 500 ML 1200 ML 250 ML 330 ML 200 ML 300 ML 600 ML

PCS RATE 24 24 24 9 24 24 24 9 24 24 24 24 24 9 24 24 9 24 24 12 24 24 30 24 24 168 214 454 459 168 214 454 459 168 214 168 214 454 459 168 454 459 214 498 532 330 564 285 214 454

PER PCS RATE 7 9 19 51 7 9 19 51 7 9 7 9 19 51 7 19 51 9 21 44 14 23.5 10 9 19

Retail Shop Type I. Monopoly Retail Shop II. Mix Shop : : The shop selling only one companys Products. The shop selling many companys Products.

The retailers can build a great deal of goodwill for the firm. The marketing strength depends on the strengths of retail dealers. Research has conduct survey on different types of outlet like bakeries, cold drink parlor, Booth and general stores etc. According to his survey, the major reasons for selling Pepsi products are:(1) (2) (3) (4) (5) (6) (7) Brand Image Customer Demand Profit Margin Advertisement Good Quality Sales Promotion for Retailers Sales Promotion for Consumers 18% 20% 05% 30% 10% 07% 10%



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Pepsi products are most popular brand but Coke products are very dear brand of consumers due to advertisement. After the collection of different views from consumer which includes, servicemen, students, and businessman and observing the sale of Pepsi products. The research has calculated the preference consumption of different Pepsi products by the people of PATNA

Brand Preference of Consumers Flavour Cola Orange Lemon Lime Mango % Consumption 49% 16% 12% 07% 17%

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50 40 30 20 10 0

Cola 3-D Column 2 3-D Column 3 3-D Column 4 3-D Column 5

15% 17% Cola Orange Lem on Lim e Mango 7% 12% 7 Up 16%


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Chapter 4.


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(Real war between Pepsi & Coke)

Every food companies have their competition. Pepsis main competitor is Coca-Cola co. Both have been selling thirst quenchers for 100 years that are now global brands. Their bottles move through the worlds most pervasive distribution network. Coke is mainly a franchise driven operation with a company supplying its soft drink concentrate to its soft bottles around the world Coke management releases that a soft drink is a convenience as well as an impulse product. According the companys expertise lies in consumers marketing. Idea is to reduce the effect span as Also coke will be experimenting with mobile dispensing units at beaches and stadiums going out towards consumers the much as possible. Cokes infrastructure plan include setting up new subsidiaries. It is also considering a 35 Greenfield venture to set-up a model plant in westerns corridor most likely in Gujarat. This will have 4 product lines with a capacity of 600 bottles per minutes with a build in flexibility to about top different and flavors and sizes. Another option for building capacity is to bringing in bottlers from overseas to invent jointly in fresh capacity. The company wants to go a stem further and set-up COCA-COLA institute a training facility for bottlers. Coke continues to stay with its multi brand strategy. This enhances the ability to leverage self-space at the retail outlet. It also gives then flexibility to offer price on brand others then lead once. Coke has launched MAJA pineapple and MAJA orange. As far as new product launched is concerned coke plans a dual brand approach by bringing in FANTA lemon. This comes about because volumes of LIMCA have increased by 20% shares, which have an 80% share of the cloudy lemon segment-So this dual brand approach will extend to that flavors too. Pepsis decision to take in company owned bottling operation (COBO) alongside franchise has proved to be winning edge over its competitor.

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By 1994 Pepsis has bought over five bottles in the key markets. This ensuring maximum control. The franchise now sees the company not just as advisor but also as carrying the weight of experience. Company system and franchisee system can now be properly aligned to meet the required objectives. On expanding reach and availability 80% of all cold drinks are consumed at the point of purchase (POP) rather than at home. The fountain initiative has paid off in higher of countrywide and they offer consumers a whole new way experience soft drinks. Also expanding teach and availability. Coke tied up with Indian oil to set up dispensing units at petrol pumps. Pepsi followed suit by striking a deal with Bharat Petroleum. Pepsi has mainly focused a brand Pepsi. Their strategy has been to keep pace with the market growth rate in non-Colas but to emerge as the definite cola they have put there might behind the brand Pepsi as the flagship brand. In 1987, Pepsi ranked 29 in the fortune list of the 500 largest industrial corporation in the U.S. Coca Cola was way down at 54, while Pepsi Co. improved its position from 34 in 1986 Coca Cola tumbled to 38 after missive public out cry, the company had to reintroduce the original coke classic. Pepsi has so far made in roads in 151countries (150 before India) including the muchpublicized ventures in the soviet Union and China. Patience in Pepsi Co.s long suit. At the base of every beverage business lies the all important secret formula of success the Concentrate. In India the concentrate is prepared by Pepsi food limited representatives of Pepsi-Cola international. They came, spent, and conquered. The size of their combined business adds up to more than Rs. 5500 Crore. The equity investment put in it tots up to a humungous $ 1347 million (Rs. 5700 crore). Yet almost 10 year after Pepsi Coca-cola Company entered India, birth are yet to turn a profit. Their accumulated losses are estimated to over Rs. 800 Crore. In a bid to comer a larger market share, invariably, either Pepsi or Coke ends up raising the stakes to a point where the math simply doesnt add up. Just that the two cola giants have been in an unseemly hurry to grow the Indian market and, at the same time deny each other any advantages, irrespective of whether it makes economics sense. In the mid 90s breakeven was pegged at 40 million cases. 55 Channel Satisfaction

Today, both players together do 150 million cases, but break-even is still elusive. The battle spilled into almost every area of operations in early 1999, that discounts were also unleashed. If the industry norm was around three to four bottles free with every case, the Cola majors began to offer six to seven bottles. In 2000 particularly in the month coke went berserk, giving 500/0 discounts. Both cola warriors targeted a clutch of key accounts about 67% of the total retail base, primarily restaurants, movie halls and hotels. In many cases the owner would play one against the other and drive a hard bargain. In may cases the cola companies. Paid close to Rs. 100 per case of expected off take as advance to secure a monopoly over the key account. The gross margins o~ a case of returnable glass bottles was just Rs. 40. In India, a single-serve P & T bottles was simply not cost effective. Aluminum cans too suffered from the same problem effective. Aluminum cans too suffered from the same problem. Now every year, both companies had to invest in fresh glass capacity and crates. Back-of-the envelop calculations suggested that to put an additional million bottles in the market required close to Rs. 40 crore investment in glass and carats, and glass bottles had to be replaced every four year after they had done 40 cycles, during which time depreciation had been charged. Till the cola companies began to concentrate on the urban centers. As soon as they pushed into the winter land, the first sings of problems surfaced. In a state like Tamil Nadu the off take per 1000 people was barely 0.9 as a result, when a Pepsi or a coke truck went into interior markets, the glass simply wouldnt come black fast, either consumption was low or the volumes were being split between the volumes were being spilt between the two competitors as a market. But that would have been completely out or character for the company. it is a bit like asking the Brazilian Soccer team to adopt German-Style total football. Across global market Pepsi has always reveled in grabbing share away from coke. But in India it finds itself in a peculiar position. It is the Numero Uno brand, outselling both coke and Thums up put together. Thats helped Pepsis Indian team to build quite a reputation. Pepsi has managed to constantly find ways to connect with the youth. So it Coke is the universal drink, which cuts across-age groups, Pepsi is the icon of the real cola quaffers Young-people between the ages of 15-29

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57 Channel Satisfaction


Control of market share is the key issue in this project. The situation is, both Coke and Pepsi are trying to gain market share in the beverage market, which is valued at over $30 billion a year 1998. Just how this is done is such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each companys marketing strategy will ultimately determine the winner with respect to sales, profits and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly same, the two companies rely on somewhat different marketing strategies. Pepsi has always taken the lead in developing new products, but Coke soon learned their lesson and started to do the same. Coke hired marketing executives with good track records. Coke also implemented cross training of managers so it would be more difficult for cliques to form within the company. On the other hand, Pepsi has always taken more risks, acted rapidly, and was always developing new advertising ideas. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beaten Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. For instance, in certain countries, consumers wanted a soft drink that was low in sugar, yet did not have a diet taste or image. Pepsi responded by developing Pepsi Max. These companies in trying to capture market share have relied on the development of new products. In some cases the products have been successful.

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However, at other times the new products have failed. For Coke, changing their original formula and introducing it as New Coke was a major failure. The new formula hurt Coke as consumers requested Classic Cokes return. Pepsi has also had its share of failures. Some of their failures included: Pepsi Light, Pepsi Free, Pepsi AM and Crystal Pepsi. One solution to increasing market share is to carefully follow consumer wants in each country. The next step is to take fast action to develop a product that meets the requirements for that particular region. Both companies cannot just sell one product: if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their target markets. Gaining market share occurs when a company stays one-step ahead of the competition by knowing what the consumer wants. MARKET SHARE ANALYSIS Company sales do not reveal the company is performing relative to competitors. For this management needs to track its market share. Market share can be measured in ways: Overall market share is the companys sales expressed as percentage of total market sales. Served market share is its sales expressed as percentage of total market sales to its served market. Market share compared with considering 100 % market. The first factor is the possibility of provoking anti-trust action. Jealous competitors like to cry monopoly if dominated firm makes further road. This rise in risk would cut down the attractiveness of pushing market share gains too far. The second factor is economic cost. The cost of legal work, public relation and lobbying rise market share. Pushing for market share is less justified when there are few scale or experience economies, unattractive market segments exist buyers want multiple sources of supply, and exit barriers are high. The factor is that companies might sure the wrong marketing-mix strategy in their bid for higher share. Companies that will more market share by cutting price are buying, not earning, a large share and their profit may be lower 59 Channel Satisfaction

Chapter 6. Market Evaluation System

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Market Evaluation System

It literally means that we evaluate the Market by various means from time to time. Our evaluation system was based on the four factors: 1. Topography 2. Customer survey through EDS (Every Dealer Survey) 3. Survey by issuing questionnaire to the customer. 4. Company Issues

Customer Survey:Who are the customers? Here the customer is categorized on those who finally sells the companies product to the consumers. Companies customers are categorized in various sub channels .They are: 1) Hyper market/Super Market. 2) Cinema Single Screen/Multiplex. 3) Food service Food Court, Food Dine/Pubs/Bars. 4) Institution Education, Office. 5) Transport- Railways, Bus Stand, Airport. 6) Leisure Amusement Park/Clubs. 7) Eatery 8) Convenience 9) Grocery Literally we can say above are the places where companies distribution channel are putting there efforts to place their product.

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Every Dealer Survey (EDS):The Every Dealer Survey commonly known as EDS is made every year by the company. This survey is done every year by the company so that complete awareness about the retailers and there attachment with the company is observed. The data of EDS helps in knowing the companys position among the competitors as well as the competitors position.

The assessment is done in following ways:The Format Of EDS Is Given As Under:-

Outlet Name: - Is the name of the outlet. Contact person: - To whom the surveyor contacts. Address: - Address of outlet. Contact no:- Is the contact number of the outlet. Channel : - Is the category of the outlet.

SIGNAGE:One of the important topic covered under the EDS is signage. Here Signage refers to visibility of brand names and different flavours in the outlet. There are various ways through which the brand names and different flavours are made visible to the consumers.

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They are: Dealer Boards. Glow Sign Boards. Shop Painting. Counter Rack. Floor Rack.

One of the important philosophy company follows is: JO DIKHTA WO BIKTA HAI means the thing which is visible in any outlet, consumer demands for it. And this philosophy of company is very much true. Through the EDS the signage of the competitor is also concluded. From the survey it was observed that the routes or outlets where there is good signage the sale of product is also up to mark. Similarly it was also noticed that company needs to put some more effort regarding signage in the weak routes.

Chilling Equipments:Under this category the chilling equipment of PEPSI and its competitor is estimated .There are series of chilling equipment of Pepsi and its competitor. They are namely PBI code Chilling machine provided by the company free of cost to the retailers having goodwill in the soft drink market. CCI code Provided by the competitor just as PBI Code. Outlet own Chilling machine owned by the outlet. PBI OYC & CCI OYC The equipments provided by Pepsi and its competitor respectively on the payment and the mode of payment is draft. 63 Channel Satisfaction

A Brief Summary Of Direct Interviews

A survey was conducted in which 10 best samples were collected from all the routes which also include distributors and dealers. Following are the questions and there evaluation according to the sample answers:

(1) Which brand you purchase the most? When it was asked about the brand preference from the customer the answer varied from one route to another. In routes like route no-5,route no- 6,route no-7 etc. which are considered the best route of Patna the figures are impressive. About 67% of customer prefers Pepsi and the remaining 33% goes in the hand of the competitors. Whereas when it was asked in the routes which company considers it as its week routes there was marginal difference in the in the figures generated in comparison to strong routes. The brand preference of customer in the week route is : PEPSI 61% COKE 39% (2) Is there Regular Supply of PEPSI? (A) Yes (b) No When asked about the regular supply of PEPSI the response was very good the sales man visited almost every day. The distribution system of Pepsi should be given credit for the above reason. There are different kind vehicle which the company uses depending upon the route. And sales man as a driver drives to their respective routes. (3) Does PEPSI salesman behave properly? (Stretch on interpersonal relationship) Since the satisfaction level of customer is measured, so the behavior of sale personnel is one of the important things to be measured in this context. So talking about interpersonal relationship with the costumer it is quite satisfactory but some reasons are 64 Channel Satisfaction

there which do not supports the satisfaction of the customer that is the routes for a sales man is never permanent so the sales man faces difficulty in establishing good relation with the customers.

(4) Does salesmen provide you with right scheme given by the Company? When the above question was asked the reply of the costumer was satisfactory. About 60% said YES About 15% said NO and about 25% said CANT SAY This is one of the important finding surveyed in different routes. And some serious decision is to be taken for the cause of no and cant say. One of the suggestions which is to be given for the cause is the scheme should be known to the customer and the sales man should carry some proof regarding the schemes announced by the company.

Scheme provided by the sales man:(5) If in problem, Pepsi personnel rectifies (a). Within day (b). Within a week (c). Within a month (d). Never When asked about problem rectification (a) 65% says (b) 20% says (c) 10% says that there problem is never rectified, and again this is a serious problem which is to be considered. 5% says within a day.

(6) Are you satisfied by the packaging of the Pepsi product? When asked about the packaging of Pepsi majority of answers was positive, 90% said that they were satisfied by the packaging of Pepsi products. 6% wanted change in the

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shape and size of c/s, and 4% were not satisfied by the packaging of tetra and pet pack of slice.

(7) Do your salesman aware you of the display and the seasonal schemes by PEPSI? (a) About 70% said they get the awareness. (b) About 20% said NO. (c) And 10% said cant say. (They exactly dont remember).

(8) Are u satisfied with the display and the seasonal scheme? This question resulted in one of the important finding. About 75 % were not satisfied with the display and the seasonal scheme. The main reason behind this is delay in the gifts given to the customers. Rest 25% said yes.

(9) Which promotional scheme you do you prefer? (a) Related To Outlet. About 55% had given stretch on good signage About 30% preferred daily scheme. About 7% prefere discount. 8% had other reasons. (b) Related To Consumer. The answer of promotional scheme of consumer was moving around stress in advertisement and scratch coupons But some answers were related to the price of soft drink that is price should be decreased. (10) Rank PEPSI and COKE with respect to your satisfaction level. This was one of the toughest question for the customers .They faced hesitation on ranking the two soft drink rivals but ultimately since the answer was to be given by the customers so they answered: 66 Channel Satisfaction

they ranked : RANK 1:-PEPSI RANK 2:- COKE

Chapter 7.


67 Channel Satisfaction

Swot Analysis

1. Pepsi has a good brand image. 2. Good quality and innovation of product for long term customer relationship. 3. High investment in research and development. 4. Segment of Pepsi product to every age group. WEAKNESS: 1. Lack of proper distribution in many areas. 2. Lack of retailers in the market. 3. No of distributors enough to retailers. 4. All brands were not available in at least 80% shops. 5. Complaint handling was not up to mark. 6. Poor signage and display is making the routes week for the sale of Pepsi OPPORTUNITY: 1. Pepsi has a growing market share and can capture new consumers as the Indian middle class is growing. 2. To improve market mix (product, price, promotion, place) 3. To increase the no. of retailers who sell the Pepsi brand. 4. To capture the growing clout of mountain dew and to hold on to its new followers.

1. Coke is the major competitor. 2. The Brand of Thumps-up and Sprite have a major fan following in India which 68 Channel Satisfaction

belongs to coke. 3. Coke has higher retailers compared to Pepsi meaning increasing availability of coke.

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The market potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of a good and service or during a stated future period. A market potential indicates how much of a particular product can be sold to a particular market segment. Market potential can be determined by measuring the sales in different areas. The data has collected from 100 outlets, which are situated in different areas of Patna. According to that, the per day sale of Pepsi Products is 154 carats and the per day sale of sale of Coke Products is 148 crates. Per Day Sales in Crate of Products
Coca Cola 48% Pepsi 52%

Pepsi Coca Cola

Warm Stock of Pepsi & Coke

100% 80% 60% 40% 20% 0% 1 2 PCI CCX

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71 Channel Satisfaction

Ma rk et S hareof W a ter S tock




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Chapter 8.

Conclusion and Suggestions

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Conclusion and Suggestion

In the earlier chapters of this report on various aspects of soft drinks industry with particular reference to establishment of Lumbini Beverages Pvt. Ltd. Its organizational structure and channel Satisfaction Lumbini Beverage Pvt. Ltd. etc have been studied. Present chapter is an attempt to summaries the whole report and present a view suggestion. From the data analysis and survey conducted by me, I arrived at the following conclusions:(1) Pepsi has the entire flavor i.e. Cola, Lemon, Orange, Mango in the market and its market share is comparatively less than Coke. (2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola. (3) One of the major drawbacks of Pepsi products is that all the flavors do not reach at each and every retail outlets but competitors products do reach that is why competitor enters in to Pepsi exclusive outlets . (4) The major problem faced by the distributor is the shortage of supply . Company representative should be checked that whether our product is reaching to the outlets timely and regularly or not. (5) Although the Visi-cooler, Sign board/Display rack and Glass strength provided by Pepsi are more than Coke but still there are number of retailers, who are either not having these or others have provided them . (6) There is unequal distribution of Visi-cooler. Retailers, who sell more are not provided Visi-cooler while retailers, which sell less, are provided visi-cooler. (7) Some of the Visi-cooler provided by Pepsi is not functioning properly, complains regularly are entertained after a long time. (8) Most of the retailers are in need of board but not provided by the Pepsi Company. (9) Most of the retailers especially small retailers have complained that the sales man does not inform about any sales promotional scheme. (10) The big retailers of Pepsi do not maintain the purity in the Visi-cooler and dictate their own terms and conditions. 75 Channel Satisfaction

Lumbini Beverages Pvt. Ltd. should introduce some change in its marketing function and advertising to market more rational. The following factors to be worthy of consideration:1. A complaint Register should be provided by the company to every distributor in every route so that, retailers/customers can write their problems. The complaint register should be checked by consumer executive and depot in charge at time to time. 2. A clear notification should be given to teach distributor and each route agent to give cash memo (with printed number) and maintain route card for every transaction. 3. Proper care should be given the companys employees at the time of scheme close. Signature of scheme receiving on the cash memo should be taken and it should be also maintained in route card. Claim of scheme should be passed after the deeply stud y of above three points i.e. difference between opening stock and closing, signature of scheme receiving on the cash memo and sells maintained in the route card. 4. Some retailers keep other companies products in the Pepsis fridge, while is provided by the company. To check additional scheme be given in every month, in the peak seasons After the checking of Pepsis Fridge (3or 4 times in every month ) if It is found that retailer does not keep other companies products in the Pepsis Pepsi fridge the claim of scheme should be passed . Thus we can improve/increase its sell and employees activities. 5. There is no electricity problem in the whole area of Patna. For chilled soft drink, Refrigerators should be provided by the company in abundance.. 6. The numbers of outlets are too much. So it is required to short the route and extra vehicles/tricycles provide in this route.

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7. Facilities provided by the company should be increased. Facilities requirements should be fulfilled in all the rural and urban area properly after deeply study for various aspects or retailers by the help of company employee and depot incharge. 8. Number of tricycle can be installed at various place like public during the peak hours i.e. evening and busy roads and chowks near the town`s commercial centers. Care should be taken to install these tricycles under a shady tree where providing relief from heat to the prospective customers as well as the vendor. 9. All these tricycles targeted the tired and thirsty consumer of the road and other place, care should be taken that soft drinks in the ice box are always chilled and ice readily available. 10. The vendors can also be provided with uniform by the company in order to give them visibility. 11. An appropriate name should be given to these tricycles and properly advertisement thus giving them some sort of identity. 12. In winters, as the sales from these tricycles may be very low because of seasonal factors Beverages Pvt. Ltd. should think of introducing such packs Beaver its various brands of beverages . 13. It is vital take for Lumbini Beverages Pvt. Ltd. that maintain the performance of Pepsi in future therefore performance of soft drink was very good in this year in comparison of coke. 14. Now a day with the introduction of tetra packs such as fruity, Tree Top etc. So Lumbini Beverages Pvt. Ltd. should think of introducing such packs of its various brands of beverages. 15. Lumbini beverages Pvt. Ltd. should be provided its the rural area also. 17. Coke is the only competitor of Pepsi. So we should try to keep every information about Coke i.e. prices scheme, policy etc. always it will help in Decision making. At last only this can be said that these suggestions are not totally but even partially can be used by the Lumbini Beverages Pvt. Ltd. it would be pleasure for me and is certain that if these are carried out by management , it will helpful in establishing the Lumbini Beverages Pvt. Ltd. on a more stronger footing. 77 Channel Satisfaction


As I was asked to carry on my vocational training I found the following limitations during my training period. So I could not collect all information regarding my topic. i) ii) Shortage of time factor was one of the biggest constraints. Most stress was given on the primary data as it was difficult to collect secondary data from the organization and distribution since it is difficult to ascertain the authenticity of their statements.


All the observation and recommendation will be made on the feed back obtained from survey.

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The main scope of this study is to ascertain the effectiveness of Channel Satisfaction and to increase the Sales Volume of the concern. The methods include regular information to the buyers creating a brand position in the market and taking measures to make the brand remain in its position. One of the important aspects of this study is also to increase the market segment for the product.

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QUESTIONARE:Outlet Name:- Address:- ... (1) Do you purchase the soft drink for your shop? (a) Yes (b) No Owner Name:- .. Contact no:-

(2) Which soft drink would you like to purchase more in quantity? (a) Pepsi (b) Coca Cola (c) Other

(3) Are you satisfied service provided by the salesmen? (a) Always (b) Many a time (c) Sometime (d) Rarely (e) Never

(4) Are you satisfied with the schemes given along with the products? (a) Always (b) Many a time (c) Sometime (d) Rarely (e) Never

(5) Are you satisfied with companys product and their quality? (a) Always (b) Many a time (c) Sometime (d) Rarely (e) Never

(6) Which are the top three products according to the shopkeeper? Pepsi:- i) ii) iii).. Coke:- i)... ii) iii). (7) Which is the preferred pack on spot consumption at your shop? (a) 200ml b) 300ml c) 500ml Any suggestions:................................................................................. .

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1. Research Methodology.. C.R.Kothary 2. Marketing Management. Philip Kotler 3. Statistical methods. S.P.Gupta 4. WWW.PEPSICO.COM

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